Purchase date Purchase price Salvage value Useful 1ife Depreciation method July 1, Year 1 $85,000 $10,000 10 years straight-line The asset's book value is $70,000 on July 1, Year 3, On that date, management determines that the asset's salvage v alue should be $5,000 rather tha should recognize during the last six the original estimate of $10,000. months of Year 3 would be: Based on this information, the amount of depreciation expense the company $8125.00 $7,375.00 $4,062.50 $3,75000